A SHARED equity scheme aimed at helping eligible people across Gwynedd buy a home on the open market is being launched by Gwynedd Council, in partnership with Tai Teg and Welsh Government, on 13 September.
The Homebuy Scheme is already available nationally, however the Council intends to extend the current Scheme further by combining funds from the Tax Premium on Second Homes and funding from the Government. This means that £13m worth of equity loans are available that will be able to provide even more people with the opportunity to purchase a home off the open market in their local community. The funding also includes an investment of £8.5m by Welsh Government as part of the Dwyfor Second Homes Pilot.
The main adaptations to the Scheme in its newest form are as follows:
Applicants will be able to borrow between 10% and up to 50% of the property’s value;
Applications can now be approved for households with an income of up to £60,000 (previously £45,000);
Increased the maximum property price that can be purchased to up to £300,000; and
Significantly increased the funding (from approx. £300,000/year to £13m over the period of four years) to be able to help even more people.
Full information about the Scheme can be found on the Council’s website (here: www.gwynedd.llyw.cymru/homebuy), including information about how to apply.
Gwynedd Homebuy Scheme is for first time buyers, or for individuals and families who find it difficult to afford to buy a suitable home on the open market. The number of people that are priced out of the market is high, and the Gwynedd Homebuy Scheme is aimed at providing support to those people.
Loans can be provided to pay the difference between the property price and what prospective buyers are able to offer as a mortgage and deposit. For example, if an individual wishes to buy a property worth £200,000, and has a deposit of £10,000 (5%), and is able to obtain a mortgage of £150,000, we can loan them £40,000 so they are able to purchase the property.
The aim is to make houses more affordable to residents who find it difficult to get an adequate mortgage to buy a house on the open market in their local area.
Gwynedd’s Homebuy Scheme is one of the Council’s many schemes to support people to find a home in their community. Here are some of the Council’s other schemes:
Tŷ Gwynedd – schemes to build intermediate affordable homes (www.gwynedd.llyw.cymru/tygwyneddEN). The first development in Coed Mawr, Bangor, has just received planning permission (https://www.gwynedd.llyw.cymru/en/Council/News/Press-releases/Medi-2022/Gwynedd-Councils-first-housing-Development-received-planning-permission.aspx)
Empty homes – an effort to bring the county’s empty homes back into use by purchasing and restoring, or offering loans and grants to local residents
Purchasing land – in order to build houses in the future, we will look at buying suitable land across the county. The Council has just bought its first parcel of land in Morfa Nefyn as part of the Housing Action Plan (https://www.gwynedd.llyw.cymru/en/Council/News/Press-releases/Awst-2022/Cyngor-Gwynedd-yn-prynu-tir-datblygu-i-godi-cartrefi-canolraddol-ym-Mhen-Llyn.aspx)
Purchasing houses – purchasing houses on the open market in order to rent them out to local residents at an affordable rent price.
Increasing the social housing stock – collaborating with the Housing Associations to build more social housing across the county
Craig ab Iago, Gwynedd Council’s Cabinet Member for Housing and Property, said:
“Through the Housing Action Plan, the Council has a clear vision to help local people be able to live in high-standard affordable homes in their area. We do this in many various ways, including purchasing homes, purchasing land, bringing empty homes back into use, building new houses, and schemes such as the Gwynedd Homebuy Scheme, which will make affording to buy o house on the open market within reach for the people of Gwynedd.
“In such a difficult time, the amendments that the Council has made, with thanks to collaboration with Grŵp Cynefin, Welsh Government and the Dwyfor Pilot, means that this scheme will allow even more people across Gwynedd to take advantage of the scheme and be able to afford to live locally.
“I encourage anyone who would like more information to visit the Council’s website, and if you’re eligible for the scheme, register with Tai Teg as soon as possible.”
Catrin Roberts, Grŵp Cynefin’s Affordable Homes Manager said:
“Tai Teg, administrated by Grŵp Cynefin, is very pleased to be working in partnership with Gwynedd Council and Welsh Government in order to be able to offer the Homebuy scheme to Gwynedd residents. As everyone is aware, house prices have increased to such an extent that all possible support needs to be offered to first-time buyers in order for them to be able to live in their communities and have a suitable, affordable and safe home.”
A spokesperson for Welsh Government added:
“Welsh Government has allocated up to £8.5 million in order to fund Gwynedd’s Homebuy Scheme. This will be an essential part of the Second Homes’ Pilot Scheme held up to 2024 in Dwyfor, working in partnership with the local authority and other partners to provide meaningful solutions for local people.